BT seals £3bn buyout deal for BTCellnet

BT has finally acquired Securicor’s 40 per cent stake in BTCellnet, the UK’s second largest mobile phone operator, for £3.15bn.

The deal, subject to approval by regulators and Securicor’s shareholders, means BT and BT Cellnet will bid as a single entity for one of the five third-generation mobile phone licences to be auctioned by the Government next year.

Third-generation mobile phones will allow access to the Internet at speeds ten times faster than fixed line phones. They will open the way for new mobile features, including video, broadcasting, and e-mail.

BT had to decide whether to bid for a licence on its own or through BTCellnet. Securicor did not want to fund a licence bid, which will cost about £500m, with a £50m deposit.

BT has always had effective control of BT Cellnet which operates as a division of BT with separate accounting, board and marketing departments. Abbott Mead Vickers.BBDO handles advertising for both companies.

When BT launched Cellnet in 1983 it still held the UK telecoms monopoly and competition concerns forced it to link up with Securicor.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here